Which Is The Lesser of Two Weevils
Is there a difference between earning more than you spend, or spending less than you make?
Think about it carefully and you will see that though they sound alike, they really do not mean the exact same thing.
The secret to being debt free, is living beneath your income. The frugalist's ideology is to spend less than you earn. While the the capitalist's ideology is to earn more than you spend.
A frugalist will spend his time searching the web, newspaper, and speaking with his friends to find that next great bargain basement deal. While a capitalist will spend his time searching the web, newspaper, and speaking with his friends to find that next great money making opportunity.
Being a frugalist suggests that you are working within the limitations of what you have. While being a capitalist implies that you are out to consume, or perhaps to sacrifice your precious time for the pursuit of more money.
I particularly like the concept of being what you may call a frugal capitalist, whom you can consider as embracing the positives of both financial philosophies. Dave Ramsey seems to straddling both views. He advocates both when you are in debt to live beneath your income, paying with cash, looking for deals and in a lot of cases, to get a part-time job to pay off those credit cards.
Labels: Dave Ramsey, Debt, Frugal
Posted By: Joe on Friday, April 18, 2008
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